CHANGE ORDER NOTICE - Pitney Postage

The state of Illinois has issued a change order notice for the Fiscal Year 2024 Pitney Bowes Postage contract (Agency Reference Number: 2024-11-001, BidBuy Reference Number: 23-478HFS-PERSA-B-36661) for the Department of Healthcare and Family Services (HFS). The change order is necessary due to recent unforeseen postage rate increases by the U.S. Postal Service, with the rate for a 1-ounce First-Class Mail letter increasing from $0.60 to $0.66 on July 9, 2023, and further increasing to $0.68 on January 21, 2024, resulting in an overall 13.33% postage rate increase in FY24. Consequently, the contract amount must be amended to cover the increased postage costs for the remainder of the fiscal year. HFS has spent an average of $580,000 per month on postage from July 1, 2023, to April 30, 2024, and requires an additional $1,160,000 to accommodate the increased rates and continue operations through May and June 2024.

This change order is limited to the existing Pitney Bowes Postage contract, which solely covers postage expenses. There are no set-aside designations or restrictions on the types of organizations that can respond, as this is an amendment to an existing contract. The incumbent vendor is Pitney Bowes, and the total contract value, including the change order, is not specified in the provided information.